Finance

  Having a great business idea without a startup capital is like wandering a vast desert in search of an oasis. You are literally going to leap in when you see one. Then gulp down the water with all the impurities. It’s wise to understand what capital gearing is before you decide to borrow or not to borrow to start your business. What is capital gearing? It’s a financial ratio that shows the amount of debt of a company to it’s equity. It’s a measure of financial risk. This risk increases toward volatility as the ratio of debt to equity gets higher. The higher the gearing ratio, the more the interest payable on debt and the lower the earnings on equity. You may end up borrowing to service debt commitments. The risk doesn’t end with sinking deeper into more debts, your control of the company could also be threatened. Your creditors may want to teach you best ways to run your business profitably. This may come in the form of business partnership and so called, “business support”. In m...

  It’s very difficult to achieve financial prosperity without puting the concept of opportunity cost to use in your spending. It’s normal to have many wants competing for your money, which may not be enough to get all of them for you.  So, to get the best out of your spending, you must understand the value attached to the best alternative foregone.  This is opportunity cost.   Understanding ande applying the concept of opportunity of cost to your personal finance, are going to help you achieve the following seven personal financial goals; 1.Spending  Within Budgetary Provision: A good budget should be a financial plan that accommodates absolutely necessary expected spending within expected income.  Obviously, a good budget is not possible in the absence of opportunity cost as you wouldn’t be to put in the budget, only things which enhance personal financial health.   So after the budget has been set up with the help of opportunity cost, ...